Cost Accounting 3 Notes
Ch12:
4 Perspective of a Balanced Scorecard
1. Learning and growth: the people and systems capabilities that support operation, can be done
through employee training and right people and right resources, innovation
2. Internal business perspective: when the last step is sufficient, the professionals will improve
business processes through their knowledge. Create value for customers
3. Customer: Identify who the customers are and their demands, once the target is known, the
business will be successful
4. Financial: once the value for the customer is created, the financial perspective can be met. All of
the benefits from the last 3 steps will be realized and bring in financial benefits for its
shareholders
Strategic analysic of operating income
Growth component:
-
Revenue efficiency
Cost effectiveness variables
Cost effectiveness fixed
Price recovery component:
-
Revenue
Cost efficiency variable
Cost efficiency fixed
Productivity component:
-
Cost efficiency variable
Cost efficiency fixed